Hong Kong: Affiliates of Binance, one of the world’s leading cryptocurrency exchanges, have filed a lawsuit against Hong Kong-based crypto payments company RedotPay and its founders, alleging fraud and breach of a commercial agreement. The lawsuit claims that RedotPay allegedly used Binance customers and funds in ways that violated the terms of their agreement and diverted customers toward its competing product. Three Binance-affiliated entities are seeking more than $470 million, or approximately ₹4,000 crore, in alleged damages.
The lawsuit was filed in Hong Kong and names RedotPay co-founders Chan Wa Choi, Gao Zhangpeng and Yao Chao. The Binance-affiliated entities involved in the legal action are Chaintecs Consulting Singapore Pte., DistributedTechnologies Ltd. and Nest Trading Ltd.
Binance alleges that it discovered from March 2026 that RedotPay had allowed and encouraged Binance Pay funds to be used without proper segregation for activities that were prohibited under their agreement, including topping up RedotPay Cards.
RedotPay, however, has rejected the allegations and said it would vigorously defend itself through the appropriate legal process. The company has also maintained that the proceedings will have no impact on its day-to-day operations.
Dispute Over the 2025 Agreement
The dispute stems from a business relationship between Binance and RedotPay that dates back several years. An initial agreement signed in November 2023 broke down within six months amid allegations that Binance Pay funds were being used to finance RedotPay prepaid cards.
The two companies subsequently entered into a second agreement in March 2025. Under the new arrangement, Binance funds were allegedly required to remain segregated. Binance customers were permitted to use their funds on RedotPay for specified purposes, including converting cryptocurrency into fiat currency, making in-app transfers and purchasing RedotPay-branded goods.
Binance alleges that RedotPay instead allowed customers to directly top up its stablecoin payment cards using Binance funds. According to the lawsuit, this allegedly resulted in more than 470,000 customers being diverted from Binance Card to RedotPay.
Binance has estimated the lifetime value of each affected customer at around $925, equivalent to approximately ₹78,000. Based on this calculation, the company is claiming around $472.8 million, or nearly ₹4,000 crore, in alleged losses.
Alleged Impact on RedotPay Valuation
The lawsuit further alleges that the diversion of Binance customers contributed to RedotPay’s rising valuation. According to the claims, RedotPay also highlighted its relationship with Binance when presenting its business prospects to potential investors.
Materials prepared by RedotPay for its 2024 Series A fundraising reportedly described the Binance partnership as a means of accelerating user adoption. The materials also referred to the ability of users to make direct deposits to RedotPay Cards through Binance Pay.
Binance has alleged that the partnership helped RedotPay receive approximately $304 million, or around ₹2,550 crore, in user funds originating from Binance Pay.
RedotPay’s Rapid Expansion
Founded in 2023, RedotPay has emerged as one of Asia’s rapidly growing crypto payments companies. It offers virtual and physical crypto debit cards through the Visa network, with users able to top up the cards using stablecoins. The cards allow customers to spend their crypto holdings at participating retail outlets and online merchants.
RedotPay has attracted investments from firms including Accel, Blockchain Capital, Circle Ventures, Coinbase Ventures and Galaxy Ventures. By late 2025, the company had reportedly reached a valuation of around $1 billion, equivalent to approximately ₹8,500 crore, while considering a potential public listing.
Binance Pay, meanwhile, had processed more than $280 billion, or nearly ₹23.6 lakh crore, in transactions by January 2026. Binance Card, a Mastercard-branded debit card, allows users to spend funds from their cryptocurrency wallets at participating merchants.
RedotPay has also reported strong growth. Its annualised payment volume has reached around $14 billion, or approximately ₹1.18 lakh crore, while annualised revenue stands at about $180 million, equivalent to nearly ₹1,530 crore. The company says it now has more than eight million users.
The company has also experienced significant executive turnover in recent years. Several senior executives have reportedly left within a relatively short period, including its former head of legal, who stepped down in July.
In addition to the Hong Kong proceedings, Binance-affiliated Chaintecs has filed a separate lawsuit against RedotPay-related entities in Singapore. A hearing in that case is scheduled for Friday. The legal disputes come as RedotPay continues to pursue rapid expansion and potential public-market plans.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
